Slaveski: Flat tax refund is the right move at the right time

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Former Minister of Finance, Professor of the Faculty of Economics and member of the Executive Committee of VMRO-DPMNE, Trajko Slaveski, in an interview for news portal Kurir analyzes the economic measures that were publicly promoted yesterday by VMRO-DPMNE President Hristijski.On the flat tax return, Slaveski says it is the right move at the right time.- It has been shown that SDSM’s move to introduce progressive taxation and increase tax rates has caused enormous damage to the economy of the Republic of Macedonia and it is no coincidence that they themselves withdrew. But they made another mistake by leaving space for three years, allegedly not repealing, but delaying the measure of progressive taxation that is wrong, creating uncertainty for economic entities. Now with the promise of a flat tax return and even a lower tax rateof 9% initially with the possibility of further reductions by another percentage point, it is returning that certainty to the enterprise and household economy, which is quite a right move . The timing of this measure of flat tax returns could not be better because, as we have seen from the middle of last year, the world economy is slowing, and the consequences of the coronavirus pandemic are now unpredictable. Due to the importance of the Chinese economy worldwide, even for Macedonia and the interruption in the supply chain, already our companies working especially in the field of automotive industry are experiencing the first consequences, said Slaveski.Slaveski says the measure of flat tax returns should be understood as preparing the economy to respond more strongly to negative external shocks.
He also speaks about the need for a new development model for the Macedonian economy.-This model that SDSM specifically applies to the extreme of consumption growth, has exhausted its capabilities and cannot produce a growth rate higher than 3% as we see. SDSM failed even in the best times for the world economy. The approach is based on the fact that the share of industry, especially the processing industry in GDP creation, which is now only 12%, must increase, and in countries such as Slovenia, Slovakia, Hungary, Poland, this share exceeds 20%.What VMRO-DPMNE President Hristijan Mickovski mentioned is modern re-industrialization, that is, modern industrial policy. This means that we are mapping all sectors, all enterprises,even products, to see, we already have the initial insights, which are the comparativeadvantages of the Macedonian economy, which may or may not be of most value to be exported, in order to increase the added value of the Macedonian economy.VMRO-DPMNE with a new approach in attracting foreign investment.- The approach to foreign companies would be targeted, to approach and bring thoseforeign companies in advance with such an approach, which will be able to animate the domestic economy, ie domestic enterprises. To that end, as Mickoski mentioned,it is planned to transform the Macedonian Bank for Development Promotion into a Development and Export Bank of the Republic of Macedonia, with staffing, recapitalization, he said.In the interview for news portal Kurir, Slaveski also talks about the targets that are precise and numerical in terms of increasing the performance of the Macedonian economy.- Here I would point out the promise of reducing corruption. Every government makes that promise, now with SDSM we have been developing events in the wrong direction. Our index of perception of corruption in the eyes of foreign investors has increased as we have higher corruption. VMRO-DPMNE promises that the Republic of Macedonia, according to that corruption perception index from unfavorable 106th place, will move it by reducing the corruption perception index. The smaller the index, the less corrupt the country is. We will move it for a significant number of places. It also applies to other indices that are followed by foreign investors such as the Forbes list, further on the competitiveness of the economy and the like, said Slaveski.

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